Sensex up 139 pts, Nifty fails to hold 10200 on caution ahead of Fed meet outcome

Sensex up 139 pts, Nifty fails to hold 10200 on caution ahead of Fed meet outcome
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Mumbai, Mar 21: Benchmark indices closed higher but were off day’s high, with investors looking cautious ahead of the outcome of Federal Reserve’s March policy meeting due later in the day.
HDFC Group stocks and Reliance Industries helped the market close higher but the selling pressure in ICICI Bank and Tata Stocks capped upside.
The 30-share BSE Sensex shed more than 200 points from day’s high to close at 33,136.18, up 139.42 points while the Nifty 50-share NSE Nifty failed to hold the 10,200-mark, rising 30.90 points to 10,155.30.
All eyes are on the outcome of two-day US Federal Reserve’s policy meeting that is scheduled to be announced tonight. Globally investors expect first rate hike of the year from the central bank but new Fed Chairman Jerome Powell’s commentary on future rate hikes will also be closely watched.
Most Asian markets ended lower and European markets were also trading weak as investors awaited a likely hike in US interest rates later in the day.
Asian markets like Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng were down around 0.3-0.5 percent. France CAC, Germany DAX and Britain FTSE were down 0.3 percent each at the time of writing this article.
Back home, the broader markets also closed off day’s high, with the Nifty Midcap index gaining 0.4 percent and BSE Smallcap index rising 0.3 percent while the market breadth turned in favour of declines.
About 1,404 shares declined against 1,272 advancing shares at close against four shares advanced for every share falling in morning on the BSE.
On the stock front, Bharti Airtel was the biggest gainer among Nifty50 stocks after global brokerage firm Goldman Sachs has reiterated its Buy rating on the stock & added it to the conviction list as the risk-reward appears attractive. “We see 35 percent potential upside in our base case against 9 percent downside in bear case,” it said.
Nifty Bank index lost more than 200 points from day’s high to close 87 points higher while PSU Bank index ended flat after rising as much as 2.2 percent in morning.
HDFC Bank, HDFC, Bajaj Finance, Reliance Industries, L&T, Maruti Suzuki and Axis Bank gained up to 3 percent whereas ICICI Bank, Tata Motors, IOC, Eicher Motors, Tata Steel and Adani Ports declined up to 2 percent.
Apart from Nifty50 stocks, JK Lakshmi Cement, VIP Industries, Shoppers Stop, IDBI Bank, DHFL, M&M Financial, Jubilant Foodworks, PNB Housing Finance, BEML, Radico Khaitan, United Spirits, Oberoi Realty, Indiabulls Real Estate, and Balrampur Chini gained up to 9 percent.
Binani Industries, United Breweries, HCC and PC Jeweller fell up to 6 percent.